16:36 26.10.2020

Ukraine not interested in 'green' metallurgy, increases electricity tariffs – Interpipe CFO

2 min read
Ukraine not interested in 'green' metallurgy, increases electricity tariffs – Interpipe CFO

Ukraine is not interested in supporting and developing 'green' metallurgy of enterprises that are least polluting to the environment, as they constantly increase electricity tariffs, Denys Morozov, the director for finance and economics of Interpipe pipe and railway wheel company, has said.

"In Ukraine, no one is interested in real environmental investments, and ecology has become a screen for profitability by some at the expense of others," Morozov said in the author's material "Green Metallurgy of Common Sense" for Economichna Pravda, also posted on the corporate website.

It is explained that "green" steel plants are those that produce steel by electric arc and have the lowest carbon dioxide emissions. In theory, this status could include Dniprostal (Dnipro), Dniprospetsstal (Zaporizhia), Elektrostal (Kurakhove), Energomashspetsstal (Kramatorsk) and Azovelectrostal (Mariupol).

"Of the total volume of steel produced in Ukraine in 2019, only 6% is occupied by electrometallurgists. At the same time, if we add up the volume of electricity consumption of all electrometallurgical plants, their total share will not exceed 1% of the total consumption in the country. Accordingly, their share will be insignificant in the total tariff of Ukrenergo for transportation services. Therefore, electrometallurgists have no influence on the collection of funds from the transportation tariff, "the financial director states.

According to Morozov, in Interpipe only 40% of electricity consumption falls under the potential incentive for "green" metallurgy, the remaining 60% falls on enterprises producing steel pipes, railway wheels and other products with a high added value.

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